Q3 2020 Earnings Call
Welcome to almost third quarter 20 earnings call.
That's how to go over.
Almost vice President Investor Relations.
Good afternoon, and welcome on the call today, we have Josh dams are founder and CEO Roosevelt, our CFO and Julie <unk>, Our Chief Communications Officer, Julie will lead off with the Safe Harbor statement and then on the call Julie.
Thanks Pete.
It's releases issued after the market close enough posted in the Investor Relations section of our website, where this call is also being webcast statements made on this call include forward looking statements related to our business under federal Securities laws, including statements about financial projections, the glavine expectation for our go to market strategy our expectation.
For sale, the new business initiatives and our financial condition. These statements are subject to a variety of risks uncertainties assumptions for a discussion of these risks and uncertainties. Please refer to documents we file with the FCC in particular todays press release and our most recently filed annual report on Form 10-K , and our most recently filed quarterly we.
<unk> on Form 10-Q .
These documents contain and identify important risk factors and other information that may cause our actual results could differ materially and that's contained in our forward looking statements.
In addition, during today's call, we will discuss non-GAAP financial measures, which we believe are useful supplemental measures themselves.
Other than revenue unless otherwise stated we'll be discussing our results of operations on a non-GAAP basis.
non-GAAP measures should be considered in addition to and not as a substitute for or an isolation from capital.
Please refer to the tables in our earnings press release for a reconciliation of our non-GAAP financial measure measures to their mostly direct.
They're most directly comparable GAAP measure would that would be handed over to Josh Josh.
Julie Hello, everyone. Thanks for joining us on the call today.
Well I'm excited to report that in Q3, we posted a 24% increase in subscription revenue.
The 20% year over year increase in total revenue.
And a better than expected increase in billings and cash flow.
These results were driven by solid core sales execution, including closing large enterprise deals, we close six deals with an easy being greater than $500000, two of which hadn't HCV over a million dollars.
Three were in our top five largest new logo deals in company history.
I will talk more about some of these wins eminent.
But at the large deals in the Q2 pipeline that Didnt close in Q2, we closed five for about half of them in Q3, and the others remain in the pipeline.
We did not lose any of the large deals that slipped from Q2 to the competition. They just are having a longer sales cycle.
I'm very pleased that were once again able to make meaningful progress on reducing or cash burn.
Coming in ahead of our guidance.
We remain committed to achieving a cash flow positive position with the cash on our balance sheet.
Another bright spot of Q3 was or gross retention rate of approximately 90% and above 90% for our enterprise segment in fact, well above 90%.
As our customers use our products and more strategic ways and continue to commit to more multiyear deals. We believe we have an opportunity to achieve even higher renewal rates.
We haven't seen any adverse changes in the competitive environment and we believe we continue to have a unique position in the market.
Customers consistent refer to the value of domains business cloud as being the quickest easiest and most secure weighted rather business with data.
They rely on don't want to connect hundreds and thousands of data sources and turn them from dark data into actionable data were insights are brought to people who never had access before.
We really do provide b. I leverage at cloud scale in record time.
Customer feedback on our new part from pricing model continues to be positive and we think this will help to land and expand business with new and existing customers.
Our corporate business continues to be study.
We made incremental investments there and are encouraged by our corporate divisions enterprise like retention and the pipeline headed into Q4.
As we look to our overall business it is going well.
But we believe it can grow even faster.
To that end, we decided to promote untypical, who has served as doubles SPP and GM of EMEA for the last three and a half years.
Two chief revenue officer.
Accordingly.
Danger Meier, our currency, our ROE will be transitioning out this quarter.
In has demonstrated an ability to rapidly and successfully grow our business in EMEA, particularly through large enterprise deals.
We believe in will be an additional accelerant to the other gross and net growth initiatives that we put in place.
He has already moved and settled to the U.S. and its operating from our demo headquarters.
He is respected by all the sales leadership and is actively managing the day to day sales operations.
For those of you don't know he n. before joining domo he managed a much larger organization for Oracle's cloud business.
He joined Oracle from right now.
And enterprise CRM provider, where he served as VP of EMEA.
With this change we'd like to think Dean for his contributions well. He was here, we were able to improve customer retention and our client services motion as well as make strong hires to the team in particular, Pam marrying our chief customer success Officer, and Jim Kowalski, Our GM of North America Enterprise.
Next I'll provide some color on the large deals we close but before I do let me comment that I am thrilled with our enterprise execution in Q3.
We remain very focused on the enterprise opportunity and are continuing to add resources against it.
We have a platform that can provide business users the information they need at scale and we can capture the most value by successfully marketing to the enterprise segment.
As we've seen in the last few quarters large enterprise sales cycles can cause some variability in our quarterly results, but our continued focus on enterprise is working as demonstrated by the large deals we did close this quarter.
Creating more predictable enterprise new business remains a priority.
The first deal that I would like to highlight is a new logo transaction with Swire Coca Cola.
Swire is a 2 billion dollar revenue business with more than 7000 associates and as a producer seller and distributor of Coca Cola and other beverages to more than 60000 to retail locations across 13 states.
We think this win highlights the value of our Peel sees or proof of concepts.
In demonstrating the power of Domo.
Swire engaged in a quick plc to demonstrate how domain could meet the needs of is of its executive team and getting better insights through data from multiple sources.
After seeing the rapid time to value. They chose don't want to help their managers better serve their selling region associates and business relationships more effectively.
Proves again that don't will can do lipper b. I leverage.
Allowed scale in record time.
Second.
This quarter, we closed two aftermarket auto parts companies, both new logo deals of over $500000 an hour.
These companies use docomo to monitor the real time performance of the retail operations measuring against daily weekly and monthly objectives for sales and service.
The last new global customer I'd like to highlight is a deal with a very large very large technology and media conglomerate.
This was one of the largest annual seven figure new logo deals in company history.
This company selected don't want for our ability to scale and shared data with their community consisting of tens of thousands of partners.
Well this customer had legacy David tools.
None could provide the scale and flexibility of our platform and our double everywhere solution. Once again proving that domo can deliver b. I leverage it cloud scale in record time.
In addition to adding large new logo accounts, we are encouraged by the value customers are receiving as they use our product evidenced by additional upsells and expansions.
One of these customer examples is the world's largest cosmetics and beauty company l'oreal.
Others include United Health Group, a fortune 10 diversified healthcare company, which continues to expand its use of docomo.
As most Pep boys, one of the largest aftermarket auto parts and services companies.
Last quarter, we outlined three initiatives to my new customers more quickly while at the same time working to close larger transactions.
These initiatives are expanding our partnerships with a focus on facility our go to market, which helps us with new logos and also with big Upsells.
Two focused and repeatable sales plays which also helped what's also helps with new logos and expansion and increased focus on free trials and wrap appeal sees which is primarily focused on new logos.
First let me provide an update on our partnership initiatives that we believe can significantly enhance the efficiency and effectiveness of our go to market.
We are uniquely positioned as a partner of choice to wide variety of application infrastructure providers for several reasons.
One reason is our ability to quickly easily and securely deliver data into the hands of business users at scale and hope partners deliver new value to their customers.
Well this is our recently announced partnership with square.
Don't want per square as a new application, which empowers merchants with multiple square accounts to easily unlock real time business insights and value from the square data.
Another reason is done most unique ability to work with data no matter, where it lives where customers prefer to host their data such as ADW S Azure or GCP.
Our native collection of more than 1000, prebuilt connectors helps customers achieve time to value at a speed that differentiates us from other solutions.
Season. This matters is because it allows any line of business to automate their business processes.
For cloud partners, the almost integration platform as a service or I pass capabilities are an attractive solution to help their customers pipe more data into their respective clouds.
Example of this is our recently announced partnership with Snowflake.
This partnership customers can use don't want to manage their data ecosystem and bring more data into snowflakes cloud data warehouse.
A third reason is our ability to help partners increased the value they deliver to their customers by providing more leverage from the data and their systems.
One example is our partnership with Verizon and AAMC asked we announced this week at eight Ws reinvent.
It delivers an end to end asset tracking solution for massive amounts of Aiotv data.
Together, we allow customers to track critical assets, such as trucks and shipping containers to get a comprehensive view of location and other conditions like temperature payload content contents et cetera.
Our second initiative to facilitate or go to market is focused repeatable sales plus which are progressing quite well.
Develop new content more focused messaging and specific sales plans and fine tune them through a pilot program.
Well. This program has just been rolled out to a broader segment of our sales team. We're encouraged by the activity and meaningful customer conversations that are creating.
Last initiative is our increased focus on free trials and rapid proof of concepts.
We continue to see the customers, who actively use our product wellness sales pipeline I don't want a significantly higher rate than those who haven't.
We recently introduced new product features to get more users into the product and increase their usage of docomo in a quicker we're scalable way.
Early indications are showing improved engagement, which we expect may lead to higher conversion rates.
I love our use of Ptcs, because it demonstrates to the customer how would deliver b. I leverage it cloud scale and record time.
I'm proud of our team for the innovation, they keep delivering and their unwavering focus on customer success I.
Im excited to see 24% subscription revenue growth and expect more in the future.
The same time I love seeing our continued progression toward cash flow breakeven, we're standing with incomparable product. The provides b. I leverage it cloud scale in record time, and I'm excited by our financial results and the growth to follow as we're better positioned than ever to execute and with that I'll turn it over to the Bruce Bruce Thank you Josh.
We're pleased to deliver Q3 that exceeded all of our guided metrics. Let me now we view the quarter's performance followed by providing fourth quarter fiscal 2020 full year guidance.
I just mentioned our strong Q3 was driven by solid sales execution, including closing large enterprise deals. We're pleased to see a significant increase in enterprise average deal sizes added enterprise sales force productivity. We also saw an increase in or enterprise net revenue retention rate from last quarter, which continues to be over 100 per se.
That for all groups.
We are improving visibility in our business through growth and recurring revenue improved retention rates and more multi year contracts. Our subscription revenue grew 24% year over year, driven by improved mix of new subscription versus services revenue and by improving retention rates are grossed retention rate was approximately.
90% and above 90% for enterprise segment.
We now have the majority or 52% of our customers under multiyear contracts at the end of Q3 compared to 39% at the end of Q3 last year. This drove our remaining performance obligations are or RP, oh to grow 25% compared to the same quarter last year.
Remaining performance obligations includes billed and Unbilled revenue under contract that has yet to be recognized.
Q3 revenue was 44.8 million a year over year increase of 22% subscription revenue represented 85% of total revenue international revenue in the quarter represent 24% of total rather than revenue compared to 26% Q2, primarily because of the strong North America performance.
Our subscription gross margin was 76.5%.
More than three percentage points from 73.3% Q3 of last year, we plan to obtain additional leverage out of our subscription cost of revenue overtime as we continue to effectively manage our datacenter operations through finding efficiencies better utilizing certain services and continuing to optimize our.
Or software that runs the demo platform. We believe we can get subscription gross margins to over 80% in the long term.
Including our services business total gross margin was 60.3%, a 310 basis point improvement compared to 65.2% and the third quarter of last year in Q3 operating expenses increased by just 5% from last year, even though revenue increased by 22% year over year.
The net effect of increased revenue, while effectively managing cost allowed us to improve our operating margin by 21 full percentage points from the same quarter last year.
Our net loss was 23.6 million a net loss per share was 85 cents. This is based on 27.6 million weighted average shares outstanding basic and diluted.
Turning now to our balance sheet as of October 31 that we had cash cash equivalents and short term investments of approximately 116 million and amount. We believe is more than sufficient to allow us to achieve a cash flow positive position.
Adjusted net cash used in operations was 16.2 million and improvement of 2.5 million over the prior quarter and a 47% reduction compared to Q3 of the prior year.
Adjusted cash flow from operations excludes 3.3 million of share purchases in Q3 under our employee stock purchase plan.
The amount is included as a positive them out in our GAAP cash flow from financing section of our cash flow statement.
And it offsetting negative them out and our GAAP cash flow from operations section with no net effect on our cash balance.
Now the discuss what we expect in Q4 fiscal year 20, we expect Q4 billings of approximately 57 million.
We are raising our fiscal 20 billings guidance to be approximately 181 million.
We're planning on our Q4 operating expenses to be up from Q3 for the year, we still expect our operating expenses to be down slightly from fiscal year 19.
We expect Q4 adjusted cash used in operations of approximately 16 million and are improving our full year guidance to approximately 73 million.
Got a formal guidance for the fourth quarter fiscal year 20, we expect GAAP revenue to be in the range of 45 million. The 46 million, we expect non-GAAP net loss per share basic and diluted of 94 98 cents. This assumes 28.1 million weighted average shares outstanding basic and diluted diluted.
For the full year fiscal 20, we now expect GAAP revenue to be in the range of 172.2 million 273.2 million representing year over year growth of 21% to 22%.
We expect non-GAAP net loss per share basic and diluted at $3.80 to $3.92. This assumes 27.5 million weighted average shares outstanding basic and diluted.
In closing we're pleased we exceeded the guidance we gave for all of our Q3 metrics. We believe we are well positioned to deliver against our Q4 guidance and we and we'll continue to push on all the new business initiatives to put us in a strong position as we go into the next fiscal year.
With that we'll open up the call for questions. Operator, Please open the call for questions.
Ladies and gentlemen, if you have questions at this time, please press star, but the number one a telephone keypad. If your question has been answered already study may be self from the Q press the pound.
Our first question comes from the line up Sanjit Singh from Morgan Stanley . Your line is open.
Thank you for taking my questions. Thanks Congrats.
And Bruce for a really nice quarter.
I wouldn't get a sense of how the quarter progress from your perspective Josh.
Was it more about closing those.
Half of those 10 deals that led to the upside in the quarter. How did you see that balance of both closing, including the sit deals as well as sort of growing the overall pipeline how that trend this quarter.
Yes, everything is trending pretty well in nicely I think in almost all of our different geographies in different sections of our business and so we saw nice growth in enterprise from new deals that weren't expected to close in Qt cute Qt Q2.
And then obviously also the ones that Didnt close that we expected to close in Q2 close in Q3 that gave us some of the upside that that we saw in the numbers.
And then as a follow up I know last quarter you.
You noted the upset the priority for PEO sees Ed just sort of reinvigorating.
That commercial commercial traction and and driving higher investments and that segment of the business where are we in terms of getting the commercial sales team to drive some of these newer playbooks the plc initiatives.
How long do you think it'll take before the commercial actually starts to become a material driver of growth.
Well I think right now it's about to equal in terms of the size of business that we have in in our corporate business and then the enterprise business and they're both both growing well, we think theres certainly more upside in the enterprise business, which is thus the focus from the executives and and the product.
In some of the sales plays that we're putting into place.
If you look at our enterprise business, we actually have enough enterprise logos to grow for quite some time I just going into those accounts, where we have started relationships.
And upselling them and so that's certainly a big focus and we think probably the outsized opportunity for our business, but corporates growing and growing well and continues to perform and as we said before just cows and his team they they do great job for us.
And they're continuing to grow their business and like we mentioned in the prepared remarks as well.
They the business there is multiyear business more than half or contracts now across our business or our multiyear relationships there customers and.
We're seeing we're seeing very interesting relationships with enterprise like retention as well. So both businesses are good businesses for us.
Great mixed kinda sorry, thanks, Josh Thank you.
Our next question comes the line Pat Walravens from JMP Securities. Your line is open.
Oh, great. Thank you and congratulations you guys.
Hey, Josh let me ask sort of big picture and forgive the background noise. What do you feel like is the biggest thing that your organization has learned over the last couple of quarters and what do you feel as sort of the biggest thing that they still need to learn and then Bruce I have one for you after.
The biggest thing that we've learned is that this is a product that definitely meets the needs of big enterprises.
And we're seeing big customers and and we we have good enough relationships with them, they're letting us talk about their names in our earnings transcript and so these customers that have been with us are buying more and more product from us and as they bring us more.
Opportunities and needs for solutions inside the organization and realize we can meet those needs I think it's been really rewarding and exciting for everyone here internally to see while we actually really do if something that's very unique and we get done providing a solution for the customer they're really excited and we know that no one else can do.
Some of these things that we're doing for our customers. So it really has been to provide that that leverage that leverage the business intelligence investments that they've made.
And really be able to do it at that scale that we have but you can see in the cloud and the thing we hear consistently from them over and over again is that it's we can do it at record time, something normally would have taken six months. We can do in week. Some of that would have taken weeks, we can do in minutes or second so I think that's the thing that's that's exciting for us right now.
And Bruce can you give us some perspective.
What's hits can you give us about how we should think about next year and.
And when you might get cash flow positive.
Well, where will we will address next year on the Q4 call. So nothing really to be said right now about next year other than.
We're doing a lot of things right now these all these initiatives that Josh brought out making sure we have enough seed industry.
You know being more even more articulate.
The value proposition that we think just will help us next year.
So.
Yeah, I can't give you any guidance on that.
Yes, and the second part of your question, but we appreciate the question yes.
[laughter] second part was do you guys want to tell us when you're going to Gaslog volumes and we still waiting.
We do not want to tell you and it's not because we are certain that we will get there. It's just we think that providing the date today.
It's really not the right time to do it and part of the driver for that and will continue to be a driver. So this would be an ongoing discussion as.
What if the business actually does what we think as possible here and what if we believe we need to.
The more aggressive.
And pursuing the business however, without without jeopardizing, our commitment that we can still get to cash flow positive cash flow positive position with the cash we have in the bank.
But I.
I think this will be a decision we make every quarter because.
As more time goes on and as we.
Hopefully have performance like we just had it becomes more and more obvious that we can easily get to that point.
The positive point and then I think what we are comfortable saying today as we think we even have.
And that we're building as we do this but to give you a date I think just the dialogue we're going to have every quarter and decision we're going to have to make every quarter.
Okay, great and congrats again.
Thank God.
Our next question comes from the line of Derrick Wood from Cowen Your.
Your line is open.
Thanks, and nice job guys.
I guess, what I wanted to ask on the the Q4 Bill engine.
I guess, it's roughly flat year on year, and obviously, you're coming off a big quarter with lots of deals, but maybe drilling in the pipeline.
Theres still five of those 10 larger deals that sound like there in the pipeline. How are you feeling about close rates on those and just how are you feeling about making sure you're refilling that pipeline.
Yeah. So.
I think that so we've been spending a lot of time on pipeline pipeline build we have all these new initiatives that are really targeted at.
Building higher customer count.
Building customer base more lance.
So that we can expand so.
And at the same time.
No.
Extremely rigorous and the definitions and the stages.
And even more rigor on all the analytics behind it.
So and you put all that together and the pipeline does continue to build and not only does it continue to build.
We think that the quality of the pipeline is.
Very strong.
And then I'll then on the big deals.
We stay there last quarter.
Well there we know there there with current customers in many cases well in all cases are the ones that slipped last quarter.
They continue to progress.
What ends up happening is because they're large and complex similar providing you know.
Solutions that are frankly, one of a kind for some of the largest institutions in the world. They go through many approvals many reviews.
Sometimes dozens of group.
Our interest in what we're doing and that makes it very unpredictable, but theres still there. So we want to continue to nurture them because eventually they will close we're highly confident that what I liked about this quarter was not only did the carryover deals from Q2 close they close early in the quarter and not all.
They did that happen, but new deals.
Came in close on time and in some cases in a couple of cases ahead of time.
So that's that's really promising for us.
Oh, it's still unpredictable because that's the nature of big deals we're still in the building pipeline there at a size that our new for us. So I think in the short run we have to still continue to be cautious on what we should expect.
Out of the enterprise business and certainly out of the big deals, but then the long run.
Everything seems to be pointing in the right direction, and we think more and more good things ought to happen to us given all the necessary we have and.
We didn't really touch much about it in the in the script, but the competitive environment is.
We think getting better for us given the transactions we've seen in the space.
Given how unique our offering is.
Given the obvious need in the market for what we have and frankly given the.
Ladies you things that have just never been done and data before so from a competitive point of view.
We feel really really good that's why in the end you know that's why we're looking forward to the future quarters and here is because we think this will just play out in a very positive way for us and and everybody that's invested enough.
Great Great color British edge, and Josh you guys signed a technology and a joint go to market partnership, but snowflake could you shed a little bit more light on that partnership and maybe how can help you from both a customer value standpoint, and maybe even from a sales distribution standpoint.
Yeah, and we've got to Ajay Headwear here, who is our chief business Officer and manages our ecosystem partner, so I'll let him.
Added to that but all I will just preface it was saying we're definitely excited about the progress we're making it the ecosystem since I, Jay and and his team have been really focused on it in.
We don't seem in the numbers, yet, but there's a there's a lot of encouraging signs and.
We're not the produced from the dance floor, yet, but we're definitely.
Answering a lot of questions and filling auto holes for needs that other people in ecosystem has in terms of their go to market and how they solve their customers need. So we're seeing a lot of synergies out there, but JD when asked that question, Hey, Derek and thanks for the question. So the topic partnerships interesting because it really celebrates with dollar does well, which is connect to the world.
Data, but then also to complement all these technologies and stuff like really hot out there right now they provide some services that are interesting to start ups.
Medium sized business and enterprise alike, but what they don't do is put that data in the hands of all end users and satisfy line of business needs and so where that's a great partnership for us not just to help with new logo acquisition help expand our current customer relationships, we have but also for snowflake, where we help to bring them unique value by introducing a new audience.
To them as well as making it easier to on on ramp data to there to their cloud warehouse.
Great. Thanks, Congrats guys. Thank you. Thank you.
Our last question comes from the line of Jennifer Lowe from GBS. Your line is open.
Great. Thank you maybe following up on 10, just a question a little bit if I look at how we've moved to the year. Yeah. We started off really strong your tuck talking about adding more sales had very rapidly 30% growth in the enterprise sales force Q2 was a little bit as they talked about you know the deferred deal.
Those sort of a focus on reinvesting back into that.
Yeah, the corporate side now we see this very strong result in Q3, and so I'm just trying to put a little context around where we are relative to what you thought you might do when you started out a year and you were feeling really good and adding all the and trying to add heads back into the sales organization.
Looking at Q3 sort of getting back to trend in where you think you should be or or is this more than that in terms of what you're actually seeing in the marketplace, where were not only back to trend up potentially that trend line is moving higher.
Yes, I'd say, we're back to trend.
Relative to performance and.
That that definitely helps embolden us we've seen we've made the investments with with into the reps, it's not like Weve.
Made investments and then pulled vestments made investments we've made the investments in there. It takes reps a period of time to to ramp up and become familiar and built a patch and those investments still stand and so were up over the course of the last 12 months, we're up about 20% in number of reps that are there and and we'll continue to increase.
In Q4, so we feel like we've built a lot of capacity into the system are we weren't as efficient as we wanted to be a year ago either.
And continue to see opportunity to get more capacity out of just what's there just given the performance and the efficiencies that we're seeing.
We're seeing efficiencies in marketing improve our marketing spend we've seen efficiencies over the last 12 months in the sales expense that we've had relative to performance. So we're encouraged by a lot of things right now and definitely this last quarter helps.
Reinforce that.
Yes, there aren't that big enterprise deals out there and.
There is an opportunity for us to find.
Cross sells an upsells within our current customer base, and I think theres going to be a lot more really big deals and hopefully we're in a place 12 months from now what we're talking about.
How many multimillion dollar customers that we have that are paying us because I think thats whats coming and we're going to build to say look at our enterprise based look how many low because we have now extrapolate that out to the.
10 that our pain as several million Bucks, a year and all of the should be paying us that amount I think thats, where were headed and that's what we're going to get too and the appeal sees that are helping sales plays the John Miller has been leading up and and helping.
And with with the leadership that we have for me and I think we're going to be in a good spot.
Just one more for me on that front. So I thought it was interesting just heard the discussion around last quarter. There was a significant number of deals that slipped some of them are still kind of working their way through the process. Yet this quarter. It you like that process is much more tightened up where you've got things that you source in the quarter enclosed in the quarter.
And I know, we talked quite a bit about feed us sort of the changes being made in the playbooks and exercising those but and then that's sort of seems like it's a little bit of a different type of opportunity that that applies to densities big elephants, but I'm. Just curious you know as your sales people, particularly enterprise I go out in the field and you look at what to sourced and closed in Q3.
First just a tender as good deals that might have slipped out at that are they going after a different type of deal are defining the mandate more tightly you're managing those processes a bit more tightly 'cause. It. It just does seem like a pretty strong contract. So I'm just curious how the deals that sourcing closed in Q3 might have looked versus the ones in Q2, which proved a little more difficult to predict.
Yes, I think we're getting better it understanding how to bring those big deals through the pipe and where all the teams that need to be cross denies the need to be dotted and and the different parts of the organization that need to buy off on things and and so I think that cadence is improving.
The more deals that we have there the more we can.
I feel comfortable that a certain number of those are going to come through and plan on those and the numbers. So I think we're seeing improvements we're definitely seeing improvements all around and I also like we said in the transcript.
It's they're lumpy deals and we're not big enough to not have lumpiness and to be able to.
Predict exactly when all those things are going to close yet.
So we still might see some lumpiness, but we definitely feel good about our prospects feel really good about the sales reps that we have there so really good about the way that we're interacting with those customers.
The sales plays they don't just help us with new deals. They definitely helped US go back into our customer base, where we may have 100 or $200000 relationship and you go in there with the sales play about finance for instance, and we show what all of our customers are using us for on the finance side or in the marketing side and you going you present that to that finance team.
And you end up at the half million dollar contract. That's it's meeting the needs of everyone in the finance organization. So.
Thats definitely we're also getting some of these big Upsells is by using those sales plays back into our current customer base.
Thank you.
Thanks, Jennifer.
We don't have any questions on the line centers continue.
Mhm.
Yeah with that that sand that call, we want to thank everybody for being on the call them, we'll look.
For two of the dialogue with with you from this point all.
Thank you very much.
Okay.
Ladies and gentlemen, this concludes todays conference. Thank you for joining a couple of wonderful.
Now it's going to.